Some banks are willing to pay £200 to acquire a new customer e.g. Nationwide £100 to the existing customer and £100 to the new customer. Nationwide will spend multiple millions on this every month.
Monzo won’t beat £200 switch incentive so perhaps we could get a little bit more creative. I wonder if Monzo could set up a weekly prize draw where, if you’ve had your salary paid in that month or successfully referred a new customer (or whatever other behaviours Monzo wish to promote - perhaps more than one entry ticket the more boxes you tick), then you can login to the app on a Friday (more app interactions - a metric used to measure growth), hit a button and opt in to the draw. The draw could be for 1,000 x £100, for example, or tiered with a big winner of £10k and reducing prizes down to £10 to a larger number of people. Or it could be that the draw occurs once per month on the week before payday and framed as “Monzonaught Rocket Boost” to help you through to payday.
This would generate some hype and sign-ups. I suspect there could be gambling laws around this and that’s maybe why it’s not been done by other banks to-date. It’s not too dissimilar to the NS&I Premium Bonds though
I think there probably are restrictions around “prize draws” like that, as you mentioned. Still, I like that you’re thinking outside the box here! There are definitely lots of things we could consider regarding growth acceleration.
Over there it’s used to try and encourage good financial habits (E.G. keeping an eye on your account (by rating all of your spends), and staying on budget, things like that) rather than to try and produce customer growth. But yes, the concept is similar
Good thinking and +1 for sharing interesting ideas. The National lottery, post code lottery and all the rest are so huge here.
I personally don’t like the thought of my bank doing lotteries and being too gamified though - I feel like it would make it feel spammy and a bit like a gambling app, so I would definitely opt out of any of that, but I can imagine a lot of people might be interested in prize draws so worth throwing the idea out there
I’ve seen some posts around something similar and made a post in the thread on ideas only Monzo would try - I still think it could work. Although I think it may need a bit of re-working with Monzo’s stance on gambling.
About lottery restrictions, the main legal problems are if you are selling tickets, but if it’s ‘do X and get a free entry’ that circumvents 99% of the legal problems iirc.
